Under an MPCI policy, how much is the insurance amount reduced for each acre planted after the final planting date?

The insurance amount under a Multi-Peril Crop Insurance (MPCI) policy is reduced by 1 percent for each day that planting is delayed beyond the final planting date, up to a maximum of 25 percent. This means that if planting occurs after the final date, not only is the crop insured at a reduced level, but there is also a specific reduction percentage applied to the coverage amount. Specifically, if planting occurs more than 12 days past this deadline, the insurance amount is reduced by 12 percent for each acre planted late, aligning with the choice indicating a 12 percent reduction.

This reduction is a critical component of the MPCI policy to ensure that farmers adhere to planting schedules, which are important for managing crop viability and risk. Therefore, when considering the implications of these policies, understanding the financial impact of late planting is essential for effective risk management in farming operations.